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Australian 
Bureau of 
Statistics 


4102.0 






Australian Social Trends 


JISIING STATISTICS TOOPAIN TPG GIRle (Ole JUS IRVEILIAIN| SOIC Ie [1 


Marco 2012 


EMBARGO: 
11.30 AM (CANBERRA TIME) WEDNESDAY 28 MARCH 2012 


Australian 
Social Trends 


March 2012 


Peter Harper 


Acting Australian Statistician 


AUSTRALIAN BUREAU OF STATISTICS CATALOGUE NO. 4102.0 


ABS catalogue no. 4102.0 


ISSN 1321-1781 


© Commonwealth of Australia 2012 





This work is licensed under a Creative Commons Attribution 2.5 Australia licence. 


In all cases the ABS must be acknowledged as the source when reproducing or quoting any part of an ABS 


publication or other product. Please see the Australian Bureau of Statistics website copyright statement for 
further details. 


INQUIRIES 


e For further information about these and related statistics contact the National Information and 
Referral Service on 1300 135 070, or refer to contacts listed at the back of this publication. 





Produced by the Australian Bureau of Statistics 


Contents 


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Life on ‘Struggle St’: Australians in low economic resource 


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ABS AUSTRALIAN SOCIAL TRENDS 4102.0 MARCH 2012 
V 


Introduction 





Australian Social Trends draws on a wide range of data, sourced both from ABS and other agencies, 
to present a picture of Australian society. This publication aims to inform decision-making, research 
and discussion on social conditions in Australia. It covers social issues of current and ongoing 
concern, population groups of interest, and changes in these over time. 


The selection of articles aims to address current and perennial social concerns and to provide 
answers to key social questions. Some topics are revisited as new data become available. The aim of 
this approach is for each report to remain responsive to contemporary concerns, while 
accumulating a more comprehensive picture of Australian social conditions over time. For this 
reason, articles often include cross references to other relevant articles in the current issue, and in 
previous issues. All articles published since 1994 are available from the Australian Social Trends 


page of the ABS web site: www.abs.gov.au/socialtrends. 


Australian Social Trends is structured according to the ABS Wellbeing Framework which identifies 
areas of social concern, population groups and transactions among people and entities within their 


social environments (see ABS Measuring Wellbeing: Frameworks for Australian Social Statistics, 2001 — 


cat. no. 4160.0). The broad areas of social concern are: 


e population 

e family and community 
e = health 

e education and training 
e work 

e economic resources 

e housing 

e crime and justice 

e culture and leisure 


e other areas - including environment, religion, and transport and communication. 


Australian Social Trends is now issued on a quarterly basis, and in the course of a year the articles 
will cover a wide range of the areas of social concern. 


The articles focus strongly on people and social concerns. Each article aims to tell a story, providing 
a sense of the social and historical context in which a particular topic is embedded, moving from 
the general to the specific, and using statistics to bring light to the issue. Articles aim to balance 
‘what’ analysis (relating the relevant statistical facts surrounding the issue, e.g. number, 
characteristics, change over time, sex, age and other differences), with 'why' analysis (providing 
context and explanation by highlighting relevant social changes and events and the chronologies of 
these). For example, an article on work may examine current labour force participation, how the 
labour market has changed over time, how different groups of people are affected by social and 
economic conditions, and how these factors may be linked to observed employment trends. 


ABS AUSTRALIAN SOCIAL TRENDS 4102.0 MARCH 2012 
Vil 





People’s material standard of living is largely 
determined by their access to economic 
resources and the consumption possibilities this 
provides. While regular income is an important 
economic resource for many people, wealth in 
the form of bank accounts, shares, 
superannuation or property can be drawn upon 
to smooth and support consumption over time, 
including during periods of low income.! 


This article looks at the characteristics of people 
in households with both relatively low income 
and relatively low wealth (low economic 
resources). The advantage of taking into 
account wealth as well as income is that it 
excludes those with high wealth who enjoy 
reasonable levels of consumption despite a low 
level of income. This approach is therefore 
more likely to capture people most at risk of 
experiencing economic hardship, than analyses 
of income alone. 


People in low economic resource 
households 


Australia experienced almost two decades of 
economic growth from the end of the recession 
of the early 1990s to the start of the downturn 
associated with the Global Financial Crisis in 
the late 2000s. This led to increases in income 
and wealth, but the benefits have been felt by 
some more than others. 


In 2009-10, nearly one in four people (23% or 4.9 
million people) lived in households that were in the 
lowest two quintiles of both equivalised adjusted 
disposable household income and the lowest two 
quintiles of equivalised household net worth. 


People and households by economic resources 


— 2009-10 
Low economic 
resources(a) Other Total 
% millions % millions % ~~ millions 
People 22.6 4.9 77.4 16.7 100.0 21.6 
Aged 0-14 
years 38.0 1.6 62.0 2.6 100.0 4.2 
Aged 15 years 
and over 19.0 3.3 81.0 14.1 100.0 17.1 
Households 20.4 1.7 79.6 6.7 100.0 8.4 
People per 
household 2.9 2.5 2.6 


(a) Households in the two lowest quintiles for both equivalised adjusted 
disposable household income (adjusted to include imputed rent) and 
equivalised household net worth. 


. . not applicable 


Source: ABS 2009-10 Survey of Income and Housing 


Life on ‘Struggle Street’ 


Australians in low economic resource households 





Data sources and definitions 


This article uses data from the ABS 2003-04 and 
2009-10 Surveys of Income and Housing, and the 
ABS 2009-10 Household Expenditure Survey. 


People with low economic resources (i.e. low 
consumption possibilities) are those in households 
in the lowest two quintiles (i.e. 40%) of both 
equivalised adjusted disposable household income 
and equivalised household net worth. People in 
other households are those who are not in low 
economic resource households. 


A household’s income consists of all current 
receipts, whether monetary or in kind, that are 
received by a household or by individual members 
of a household, and which are available for, or 
intended to support, current consumption. This 
includes income from wages and salaries 
(including salary sacrificed or salary package 
arrangements), profit or loss from own 
unincorporated business, investment income, 
government pensions and allowances, 
superannuation, workers’ compensation and child 
support. 


Disposable income is the income remaining after 
income tax, the Medicare levy and the Medicare 
levy surcharge are deducted. 


Adjusted disposable household income is 
disposable household income, including net 
imputed rent. 


Net imputed rent is an estimate of the value of 
housing services that households receive from 
home ownership, from paying subsidised rent, or 
from occupying a dwelling rent-free. It is equal to 
the estimated market rent that a dwelling would 
attract if it were to be commercially rented, less 
housing costs that would be paid by a landlord. 


To enable comparison of the relative economic 
wellbeing of households of different size and 
composition, measures of income, wealth and 
expenditure in this article have been adjusted or 
equivalised to take account of these differences. For 
a lone person household, the equivalised value is 
equal to the original value. For a household 
containing more than one person, it is an indicator 
of the level that would be needed by a lone person 
household to enjoy the same level of economic 
wellbeing as the household in question. 


Net worth or wealth is the value of a household’s 
assets less the value of its liabilities. 


Quintiles are groupings that result from ranking all 
households or people in the population in 
ascending order according the relevant 
characteristic (e.g. income, expenditure, or wealth) 
and then dividing the population into five equal 
groups, each comprising 20% of the population. 


These low economic resource households have, 
on average, more household members (2.9 
people) than other households (2.5 people). 
Children were twice as likely as adults to live in 


ABS AUSTRALIAN SOCIAL TRENDS 4102.0 MARCH 2012 


1 


low economic resource households. In 2009-10, 
1.6 million children aged 0 to 14 years (38%) 
lived in low economic resource households, 
with 3.3 million people aged 15 years and over 
(19%). 


Income and wealth 


A person’s economic resources and their 
potential standard of living are related to their 
household’s characteristics. In 2009-10, the 
average weekly equivalised adjusted disposable 
household income of people in low economic 
resource households ($465) was less than half 
(45%) that of people in other households 
($1,033). 


After adjusting for inflation, incomes of those in 
households with low economic resources 
increased in real terms by 21% between 2003-04 
and 2009-10, compared with a 27% rise across 
other households.? 


This disparity between people in low economic 
resource households and the rest of the 
population is even more pronounced when it 
comes to wealth. The average equivalised net 
worth of people in households with low 


The disparity in both income and wealth between 
low economic resource households and the rest of 


the population has increased since 2003-04. 


economic resources in 2009-10 ($53,500) was 
one tenth of the average across other 
households ($509,800). After adjusting for 
inflation, the net worth of low economic 
resource households had not increased 
significantly since 2003-04, while the average 
net worth across all other households had 
increased by 29%. 


These data indicate that the disparity in both 
income and wealth between those in low 
economic resource households and the rest of 
the population had grown over the six years to 
2009-10. 


Further Definitions 


Dependent children include all children aged under 
15 years, and people aged 15-24 years who are full- 
time students, have a parent in the household and 
do not have a partner or child of their own in the 
household. 


The reference person for each household is the 
person aged 15 years or over who (in order of 
selection): has the highest tenure type; is one of the 
partners in a registered or de facto marriage; is a 
lone parent with dependent children; is the person 
with the highest income; or is the eldest person. 


.. household composition 


In 2009-10, one in five (20% or 1.7 million) 
households were classified as having low 
economic resources. The proportion varied 
according to the composition of the household 
and the age of the household members, 
reflecting the fact that people are at greater risk 
of economic hardship at particular stages in the 
life course. 


Among households comprising one parent with 
dependent children, three in five (59%) were 
classified as having low economic resources. 
One parent households accounted for only 6% 
of all households, but made up 18% of low 
economic resource households. 


Couples with only dependent children were 
also more likely than average to have low 
economic resources (24%). Among these 
households, those whose eldest child was aged 
less than 15 years were more likely to have low 
economic resources (27%) than those with older 
children (18%). 


The proportion of households classified as 
having low economic resources increased with 
the number of children in the household — from 
28% of households with one child aged less 
than 15 years, to 33% of those with two 
children, and 49% of households with three or 
more children aged less than 15 years. 


Income, expenditure and wealth by economic resources — 2009-10 


Average weekly equivalised adjusted disposable 
household income(b) 


Average weekly equivalised adjusted household 
expenditure(b) 


Average equivalised household net worth 


Households 


Low economic 
resource 
Units households(a) 


Other 
households All households 


S 465 1 033 905 

S 500 872 789 

$’000 53.5 509.8 406.5 
millions 1.7 6.7 8.4 


(a) People in the two lowest quintiles for both equivalised adjusted disposable household income (adjusted to include imputed 


rent) and equivalised household net worth. 
(b) Adjusted to include imputed rent. 


Source: ABS 2009-10 Survey of Income and Housing; ABS 2009-10 Household Expenditure Survey 


ABS AUSTRALIAN SOCIAL TRENDS 4102.0 MARCH 2012 


2 


Low economic resource households as a proportion of households in selected life 


cycle groups — 2009-10 


Lone person aged under 35 

Couple only, reference person aged under 35 
Couple with dependent children only 

One parent with dependent children only 
Couple with dependent and non-dependent children only 
Couple with non-dependent children only 
Couple only, reference person aged 55-64 
Couple only, reference person aged 65+ 
Lone person aged 65+ 

Other 

All households 


Source: ABS 2009-10 Survey of Income and Housing 


The likelihood of having low economic 
resources was much lower among households 
with older couples and those without 
dependent children. Only 6% of households 
comprising a couple with non-dependent 
children fell into the low economic resource 
category. Older couples living by themselves 
were also less likely than average to have low 
economic resources, regardless of whether the 
reference person was aged 55-64 years (6%), or 
65 years and over (8%). While lower income 
levels were quite common among households 
comprising a couple aged 65 years and over 
(63% were in the lowest two quintiles of 
income), relatively higher levels of wealth 
among these households (only 13% were in the 
lowest two quintiles of net worth) explains why 
relatively few were counted among low 
economic resource households. 


Among older people, living alone was 
associated with a greater risk of economic 
hardship. One in five (20%) people aged 65 
years and over who were living alone were 
considered to have low economic resources. 


...work 


Employment plays a key role in economic 
wellbeing for many people as it is the main way 
people obtain the economic resources needed to 
support current household living expenses as 
well as to save for retirement. Depending on 
circumstances, a lack of employment for 
household members may increase the risk of 
economic hardship. 





The average number of people employed in low 
economic resource households in 2009-10 was 
considerably lower than in other households 
(0.8 compared with 1.4 people). The average 
hours of paid work, in total by all members in 
households with low economic resources (27 
hours per week), was half that of other 
households (54 hours per week). These 
differences are partly due to the lower 
proportion of people of working age in low 
economic resources households. 


Households with no-one employed were twice 
as likely to have low economic resources (32%) 
as those with at least one person employed 
(16%). Similarly, households where only one 
person was employed were twice as likely to 
have low economic resources (24%) as those 
where two people were employed (11%). 


The importance of employment to household 
economic wellbeing was particularly apparent 
for those with young children. Of households 
comprising a couple with dependent children 
where no-one was working, 70% were 
identified as having low economic resources, 
compared with only 22% where at least one 
person was working. Among one parent 
households with dependent children where 
no-one was employed, 88% had low economic 
resources, compared with 42% in which 
someone was employed. 


Having someone in the household employed 
does not necessarily guarantee relatively higher 
economic resources. In 2009-10, more than a 
third (37%) of households with one part-time 
worker only, fell within the low economic 
resource group. Even among households with 
one full-time worker only, one in five (20%) had 
low economic resources. 


ABS AUSTRALIAN SOCIAL TRENDS 4102.0 MARCH 2012 


3 


Selected household characteristics by economic resources — 2009-10 


Low economic 


resource Other All 
Units households(a) households households 
Median age of household reference person(b) years 42 51 49 
Average number of people no. 2.9 2.5 2.6 
Average number of employed people no. 0.8 1.4 1.3 
Average weekly hours worked(c) no. 26.6 53.9 48.3 
Main source of household income from wages and 
salaries % 48.5 73. 67.8 
Main source of household income from government % 
pensions and allowances 43.8 13.0 19.9 
Home owner without a mortgage 7 4.2 34.1 27.3 
Home owner with a mortgage 7 27.5 47.8 43.2 
Public housing 7 13.0 0.5 3.3 
Private renter 7 50.2 15.2 23.1 


(a) People in the two lowest quintiles for both equivalised disposable household income (adjusted to include imputed rent) 
and equivalised net worth. 


(b) Median age refers to the age which divides the group into two equal parts, one half being below this age, the other half 
being above. 


(c) Total average hours worked by all household members in their main and second job. 


Source: ABS 2009-10 Survey of Income and Housing 


..main source of income wages and salary as their main source of 
household income, compared with nearly three 
quarters (73%) of people across other 


households. 


Of those living in one parent households with 
low economic resources, nearly three-quarters 
(74%) relied on government pensions and 
allowances as their main source of household 
income. In lone person and couple only 
households where the reference person was 65 
years and over and which had low economic 
resources, 99% relied on government pensions 
and allowances as their main source of income. 


The lower levels of employment among low 
economic resource households were reflected in 
relatively high reliance on government 
pensions and allowances. Of people in low 
economic resource households in 2009-10, 44% 
relied on government pensions and allowances 
as their main source of household income. This 
compares with 13% of people across other 
households. Around half of people in low 
economic resource households (49%) had 


Government benefits, taxes, and 
income distribution 


The government tax and transfer system 
redistributes economic resources to assist those in 
the community who are most in need of financial 
support. 


... NOUSINg 


People’s command over economic resources can 
influence their housing opportunities and 
particularly their chances of owning their own 
home. Less than a third (32%) of people in low 
economic resource households lived in an 
owner occupied dwelling (and only 4% in 
mortgage free dwellings), compared with 82% 
of other people (including 34% in mortgage free 
dwellings). The lower ownership rates partly 
reflect the younger age profile of those in low 
economic resource households, with many at a 
stage in the life course during which home 


The income measure used in this article includes 
government benefits, pensions and allowances 
received in cash. However, the most 
comprehensive income measure, final income — 
equal to adjusted disposable household income 
plus government social transfers in kind (e.g. 
health, education and housing), less taxes on 
production and consumption) — will become 
available when the results of the 2009-10 study are 
released in Government Benefits, Taxes and Household 
Income, Australia, 2009-10 (cat. no. 6537.0) on 29 


June 2012. 


Results from the ABS 2003-04 study showed that 
the net effect of the full range of government 
benefits and taxes on the distribution of household 
income was an increase in the income of 
households in the lower income groups, and a 
decrease in the average income of households in 
the higher income groups. 


ownership is less common. 


Those in low economic resource households 
were much more likely to be renting in public 
housing (13% compared with 1% across all 
other households). As might be expected, 89% 
of all public housing tenants lived in low 
economic resource households. 


ABS AUSTRALIAN SOCIAL TRENDS 4102.0 MARCH 2012 


4 


Expenditure patterns of low 
economic resource households 


While information on people’s economic 
resources (i.e. their income and wealth) 
provides insight into their consumption 
possibilities, expenditure on goods and services 
provides information about their actual 
consumption, and gives an indication of their 
material standard of living. 


In 2009-10, the average weekly equivalised 
expenditure (adjusted to include imputed rent) 
on goods and services of people in low 
economic resource households ($500) was 57% 
of the average expenditure of other households 
($872). 


Between 2003-04 and 2009-10, after controlling 
for inflation, the weekly equivalised adjusted 
household expenditure of people in low 
economic resource households increased by 
14% ($61). The average expenditure of other 
households increased by 17% ($126) over the 
same period. 


Housing, food and transport were the broad 
expenditure items that accounted for the largest 
proportion of expenditure on goods and 
services across both low economic resource 
households and other households. Among 
those in low economic resource households, 
these items accounted for 57% of total 


expenditure, while for those in other 
households they accounted for 45%. 


The equivalised expenditure on housing of 
those who lived in low economic resource 
households ($133 per week) was similar to that 
of people in other households ($130). However, 
housing represented a greater proportion of 
total expenditure on goods and services for 
those in low economic resource households 
(27% compared with 15%). 


The average weekly equivalised expenditure on 
food among low economic resource households 
($89) was 67% of that spent by other 
households ($132). Transport costs accounted 
for 13% of total goods and services expenditure 
among low economic resource households and 
15% for other households. In terms of levels, the 
equivalised expenditure on transport among 
low economic resource households ($62 per 
week) was less than half that among other 
households ($130), on average. 


It was a similar situation with expenditure on 
recreation, with low economic resource households 
spending 10% of their total expenditure on 
recreation, compared with 12% for people in other 
households. However, those in low economic 
resource households had considerably lower 
equivalised expenditures on recreation ($50 per 
week) than people in other households ($108). 


Weekly equivalised expenditure by economic resources — 2009-10 


Broad expenditure unit 

Goods and services 
Current housing costs (selected dwelling) 
Domestic fuel and power 
Food and non-alcoholic beverages 
Alcoholic beverages 
Tobacco products 
Clothing and footwear 
Household furnishings and equipment 
Household services and operation 
Medical care and health expenses 
Transport 
Recreation 
Personal care 
Miscellaneous goods and services 


Average weekly equivalised adjusted 
expenditure on goods and services(b) 


resource 
households(a) Other households All households 
S % S % S % 
133 26.6 130 15.0 131 16.6 
17 3.3 20 2.3 19 2.4 
89 17.8 132 1531 122 15.5 
10 1.9 21 2.4 19 2.4 
10 1.9 7 0.8 7 0.9 
16 3.2 30 3.4 27 3.4 
16 3.2 40 4.5 34 4.3 
29 5.9 44 5.1 A1 5.2 
15 3.0 45 5.1 38 4.8 
62 12.5 130 14.9 115 14.5 
50 10.0 108 12.4 95 12.0 
8 1.6 16 1.8 14 1.8 
34 6.8 80 9.2 70 8.9 
500 #£100.0 872 100.0 789 100.0 


Low economic 


(a) People in the two lowest quintiles for both equivalised adjusted disposable household income (adjusted to include 


imputed rent) and equivalised household net worth. 
(b) Adjusted to include imputed rent. 


Source: ABS 2009-10 Household Expenditure Survey; ABS 2009-10 Survey of Income and Housing 


ABS AUSTRALIAN SOCIAL TRENDS 4102.0 MARCH 2012 


5 


Selected indicators of financial stress(a) by economic resources — 2009-10 


Low economic 


resource Other All 

Household experience households(b) households households 
% % % 

Spend more money than we get 24.4 12.5 14.9 
Unable to raise $2,000 for something important in a week 43.3 7.0 14.4 
Could not pay gas/electricity/telephone bill on time 31.0 7.9 12.5 
Could not pay registration/insurance on time 12.3 3.2 5.0 
Pawned or sold something 8.1 1.3 2.7 
Unable to heat home 6.3 0.8 1.9 
Went without meals 10.1 1.4 3.2 
Sought financial assistance from friends/family 20.1 4.9 7.9 
Sought assistance from welfare/community organisation 10.3 0.9 2.8 
millions millions millions 

Total households 1.7 6.7 8.4 


(a) Household situation over the past 12 months. 


(b) People in the two lowest quintiles for both equivalised adjusted disposable household income (adjusted to include 


imputed rent) and equivalised net worth. 


Source: ABS 2009-10 Survey of Income and Housing 


People in low economic resource households 
had lower equivalised expenditures on medical 
and health care than those in other households, 
both in proportional terms (3% and 5%, 
respectively), as well as levels ($15 and $45 per 
week, respectively). This may be due to the 
younger age profile of people in low economic 
resource households. Additionally, two-thirds 
(67%) of low economic resource households 
had at least one person who had access to 
subsidised health care through government 
concession cards, compared with one-third 
(34%) of other households. 


Financial stress 


While people who are comparatively well off 
can experience financial stress and perceptions 
of stress can vary within a household, different 
rates of stress observed across groups can 
provide valuable additional insights into their 
relative material wellbeing. 


..ability to save income 


In 2009-10, 17% of households with low 
economic resources reported being able to save 
money most weeks, compared with 46% of 
other households. Around a quarter (24%) of 
low economic resource households reported 
spending more money than they received most 
weeks, twice the rate of other households 
(12%). This gives an indication of the extent to 
which people, particularly in low economic 
resource households, may be forced to draw 
upon their limited assets or rely on credit from 
week to week simply to make ends meet. 


..ability to raise emergency money 


An important element of financial security is 
the ability to meet unexpected expenses. In 
2009-10, 43% of low economic resource 
households reported that they would not be 
able to raise $2,000 in a week for something 
important. In contrast, only 7% of other 
households reported being in this position. 


..other indicators of financial stress 


A range of other indicators of financial stress 
were more prevalent among low economic 
resource households: 10% reported that they 
had gone without meals in the past 12 months 
due to cash flow problems, while 8% had 
resorted to pawning or selling possessions. By 
contrast, only 1% of other households had been 
forced to either of these lengths. 


Close to a third (31%) of low economic resource 
households reported that they had been unable 
to pay a utility bill on time in the past 12 
months, and 20% had sought financial help 
from friends or family due to cash flow 
problems. This compares with 8% and 5%, 
respectively, among other households. One in 
ten (10%) low economic resource households 
were forced to seek assistance from welfare or 
community organisations, compared with 1% 
of other households. 


ABS AUSTRALIAN SOCIAL TRENDS 4102.0 MARCH 2012 


Looking ahead 


While there will always be disparities between 
households in terms of income and wealth, the 
tax and transfers system, along with other 
government interventions, serve to minimise 
the risk of economic hardship, particularly at 
critical points in the life course. 


The 2011 Henry review into Australia’s tax and 
transfer system outlined a number of 
challenges facing the country over the coming 
decades.* These include the need to increase 
participation and productivity in the workforce; 
maintain the adequacy and sustainability of the 
tax and transfer system in the context of an 
ageing population; increase retirement savings 
through the superannuation system; and 
increase housing affordability. These key 
directions were set with a view to the 
importance of policies that not only redistribute 
income but that also promote growth of 
incomes at all levels. 


Endnotes 


1 Australian Bureau of Statistics, 2001, Measuring 


Wellbeing: Frameworks for Australian Social 
Statistics, 2001, cat. No. 4160.0. 
<www.abs.gov.au>. 

2 Estimates of income for 2003-04 are not directly 
comparable with 2009-10 due to improvements in 
measuring income. Estimates for 2003-04 have 
been recompiled to reflect the new treatment of 
income, where data are available to support this 
calculation. 


3 Australian Government 2011, Australia’s future tax 
system, viewed 27 February 2012 
<www.taxreview.treasury. gov.au >. 





ABS AUSTRALIAN SOCIAL TRENDS 4102.0 MARCH 2012 
7 


Anyone in society can experience a period of 
homelessness at some stage in their life. 
Adverse life events or circumstances, such as 
illness or being the victim of violence, may 
trigger an episode of homelessness that, for 
some, may only be short lived. However, others 
experiencing homelessness may have struggled 
with considerable personal disadvantage 
throughout their lives.' In such circumstances 
there may be less personal, family or 
community resources at their command to 
either avoid or quickly recover from an episode 
of homelessness. 


People who are experiencing or have 
experienced homelessness can be disconnected 
from employment and education institutions, 
be socially excluded from support networks, 
and are more likely to experience poorer 
physical and mental health.! 


This article examines a range of socio-economic 
indicators of those who had experienced at least 
one episode of homelessness in the last 10 
years, but were no longer homeless. It does not 
examine causal relationships between 
homelessness and people’s circumstances. 


Who has been homeless? 


In 2010, 1.1 million adults (7% of the 16.8 
million adult population living in private 
dwellings) had experienced homelessness at 
some time in the previous 10 years. There were 
a similar number of men and women in this 


group. 


Age distribution —2010(a)(b) 


= @ Persons homeless in the last 10 y ears 
@ Persons who have never been homeless 
| a 
iam 
0 





18-34 


35-54 
Age group (years) 
(a) Age reported at time of survey. 
(b) Excludes persons who had been homeless more than 10 years ago. 


55 and over 


Source: ABS 2010 General Social Survey 


Bitew-)itcla mle)aalaes alec 





Data sources and definitions 


Data in this article are from the ABS 2010 General 
Social Survey (GSS). The GSS provides a very wide 
range of information about people who, at the time 
the survey, were living as usual residents of private 
dwellings in Australia (excluding very remote 
areas). The GSS, therefore, does not include people 
who, at the time of the survey, were staying in 
homeless shelters; sleeping rough; staying 
temporarily with other households; or staying in 
boarding houses. Therefore very few people who 
may have been experiencing homelessness at the 
time of the survey will have responded to the 


survey. See ABS General Social Survey: Summary 
Results, Australia, 2010 (cat. no. 4159.0). 





In this article, Homelessness is defined as a 
reported period in the past when the respondent 
had no permanent place to live as a result of: 
violence/abuse/neglect; tight housing market/rental 
market; family/friend/relationship problems; 
financial problems; alcohol or drug use; mental 
illness; gambling; job loss; eviction and natural 
disasters. While there were 965,000 adults whose 
most recent period of homelessness had been more 
than 10 years ago, this article focuses on the 1.1 
million people who had at least one episode of 
homelessness in the last 10 years. 


Never been homeless refers to people aged 18 years 
and over who had never experienced 
homelessness. It includes both people who had 
never been without a permanent place to live, or 
for whom the only reasons for being without a 
permanent place to live were: travelling/on 
holidays; work related reasons; just moving 
back/into town or city; house sitting; saving money; 
and building or renovating a home. 


Age standardisation removes the effect of age 
when comparing socio-economic characteristics 
between the population who had experienced 
homelessness in the past 10 years with those who 
had never been homeless. 


Socio-Economic Indexes for Areas (SEIEA) 
summarise different combinations of the social and 
economic information from the Census of 
Population and Housing to allow ranking of 
regions/areas, by the level of social and economic 
well-being in each region. The SEIFA Index of 
Relative Socio-Economic Disadvantage includes 
attributes such as low income, low educational 
attainment, high unemployment and jobs in 
relatively unskilled occupations. The index refers to 
the on average population of the area in which a 
person lives, not to the socio-economic situation of 
any particular individual. The first quintile 
represents the areas of most disadvantage and the 
fifth quintile represents the areas of least relative 
disadvantage. 


...age 


People who reported experiencing 
homelessness in the last 10 years were generally 
younger than those who had never been 
homeless. While one third (32%) of the general 


ABS AUSTRALIAN SOCIAL TRENDS 4102.0 MARCH 2012 


8 


adult population were aged 18-34 years, this 
age group accounted for 55% of those who had 
been homeless. In contrast, while those aged 55 
years and over also accounted for one third 
(32%) of the general adult population, only 11% 
of those who had experienced homelessness 
were 55 years or over. 


..education 


People who had experienced homelessness in 
the last 10 years reported lower levels of 
educational attainment. After standardising for 
age, of adults who had been homeless, one 
third (33%) had not gone beyond Year 10 at 
school nor obtained a non-school qualification 
above Certificate II level, compared with 23% of 
those who had never been homeless. Having 
been homeless was also associated with a lower 
likelihood of having obtained a Bachelor degree 
or higher (17% compared with 24% of those 
who had never been homeless). 


..disability and long-term health 
condition 


Adults who had been homeless in the last 10 
years were much more likely to report having a 
disability or long-term health condition (64%) 
compared with those who had never been 
homeless (37%). People who had a disability or 
long-term health condition and had been 
homeless in the last 10 years were four times as 
likely to report that they had a disability type or 
restriction which was psychological (22% 
compared with 5%). 


Living Conditions 


..employment 


Being employed has many benefits aside from 
financial ones, such as providing the 
opportunity to build networks and have social 
interaction. It can also assist with building 
confidence, developing a sense of pride and 
achievement and motivating people. People 
who are unemployed or not in the labour force 
may be more vulnerable to missing out on these 
opportunities. 


More definitions 


A person has a disability or long-term health condition if they 
have a limitation, restriction, impairment, disease or disorder, 
which has lasted, or is likely to last, for at least six months 
and/or restricts everyday activities. 


Unemployed people are those aged 18 years and over who were 
not employed, but were actively looking for work in the four 
weeks prior to the survey and available to start work in the 
week prior to the survey. 


Not in the labour force refers to people aged 18 years and over 
who were not employed and who were not actively looking for 
work in the four weeks prior to the survey. 


People reporting a disability or long-term 
health condition or restriction type(a)(b) 


Homeless in the Never been 


last 10 years (b)(c) homeless 
% % 

Sight, hearing, speech 23 13 
Physical 47 24 
Intellectual 6 2 
Psychological 22 
Head injury, stroke or brain 
damage 2 1 
Other condition which 
restricts every day 
activities(d) 32 18 
Has no disability or long-term 
health condition 36 63 


(a) A disability or long-term health condition type or restriction may be 
reported more than once and / or a person may report more than one 
condition, hence categories may not add to 100%. 


(b) Excludes persons who had been homeless more than 10 years ago. 
(c) Adults who experienced homelessness in the last 10 years. 


(d) Other condition which restricts every day activities includes any other 
long term condition that requires treatment or medication and any 
other long term condition such as arthritis, asthma, heart disease, 
Alzheimer's disease, dementia etc. 


Source: ABS 2010 General Social Survey 


In 2010, adults who had been homeless in the 
last 10 years were more likely to report being 
unemployed (9%) than those who had never 
been homeless (3%). They were also more likely 
to not be in the labour force (41% compared 
with 31%). 


Income 


Adults who had been homeless were twice as 
likely to report that their main source of 
personal income was a government pension or 
allowance compared with those who had never 
been homeless (48% compared with 24%). 


Household income—2010(a)(b)(c) 


0 
a @ Persons homeless in the last 10 y ears 

@ Persons who have never been homeless 
>| = 





' 4 
10 


Lowest 
quintile 





Third 
quintile 


Fourth 
quintile 


Second 
quintile 


Highest 
quintile 
Equivalised gross weekly household income 


(a) Age standardised. 
(b) Excludes persons who had been homeless more than 10 years ago. 
(c) Totals exclude ‘not known’ or ‘not stated’. 


Source: ABS 2010 General Social Survey 


ABS AUSTRALIAN SOCIAL TRENDS 4102.0 MARCH 2012 


Selected cash flow problems(a)(b)(c)(d) 


Cash flow problems reported 
within the last 12 months 


Homeless in the Never been 
last 10 years(e) homeless 


% % 
Household could not pay electricity, gas, 
or telephone bills on time 38 10 
Household could not pay mortgage or 
rent payments on time 11 4 
Household could not pay for car 
registration or insurance on time 14 5 
Household could not make minimum 
payment on credit card 12 5 
Household pawned or sold something 
because cash was needed 11 2 
Members in household went without 
meals 11 1 
Members in household were unable to 
heat home 5 1 
Members in household sought financial 
help from friends or family 22 s 
Members in household sought assistance 
from welfare /community organisations 12 1 
Households reporting three or more cash 
flow problems 23 5 


(a) In the 12 months prior to the survey. 

(b) Age standardised. 

(c) Excludes persons who had been homeless more than 10 years ago. 
(d) Excludes not known or not stated. 

(e) Adults who experienced homelessness in the last 10 years. 


Source: ABS 2010 General Social Survey 


Adults who had experienced homelessness 
were more likely to live in a lower income 
household than those who had never been 
homeless. In 2010, three in five (59%) of the 
adults who had experienced at least one 
episode of homelessness in the 10 years prior to 
the survey were in the bottom 40% of the 
household income distribution (after adjusting 
eross household incomes for household size 
and composition), compared with 36% of those 
who had never been homeless. 


.. living arrangements 


Adults who had been homeless in the last 10 
years were more than twice as likely to be in a 
one parent family (17% compared with 8%) and 
much more likely to be living alone (28% 
compared with 12%) or in a group household 
(9% compared with 3%) than adults who had 
never been homeless. 


Adults who had experienced homelessness in 
the last 10 years were five times more likely to 
be living in public housing than those who had 
never been homeless (10% compared with 2%). 


They were also twice as likely to be renting 
privately (45% compared with 20%), and much 
less likely to live in an owner occupied 
dwelling (38% compared with 74%). 


..financial stress 


Adults who had experienced homelessness 
within the last 10 years were more likely to live 
in households constrained in their activities 
because of a shortage of money. 


In the 12 months prior to being surveyed, 
almost one quarter (23%) of people who had 
experienced homelessness lived in households 
which reported having three or more different 
types of cash flow problems (compared with 
5% of people who had never been homeless). 


Of adults who had been homeless in the last 10 
years, 38% reported being unable to pay 
electricity, gas or telephone bills on time, 
compared with 10% of people who had never 
been homeless, while one in ten (11%) of the 
adults who had been homeless reported that a 
member of their household went without 
meals, compared with 1% of people who had 
never been homeless. 


Where do they live now? 


Compared with persons who had never been 
homeless, in 2010, people who had experienced 
homelessness in the last 10 years were more 
likely to be currently living in more 
disadvantaged areas. 


People who had experienced homelessness in 
the last 10 years were more likely to report 
neighbourhood problems than people who had 
never experienced homelessness. Of those 
reporting problems, they were twice as likely to 
report that using or dealing drugs was a local 
neighbourhood problem (28% compared with 


Relative disadvantage of area—2010(a)(b)(c)(d) 





7 @ Persons homeless in the last 10 y ears 
G@ Persons who have never been homeless 
20 | 
10 
0 





Lowest Second Third Fourth Highest 
quintile quintile quintile qunitile quintile 
(a) Age standardised. 
(b) Excludes persons who had been homeless more than 10 years ago. 
(c) Excludes not known or not stated. 
(d) SEIFA Index of Relative Disadvantage. 


Source: ABS 2010 General Social Survey 


ABS AUSTRALIAN SOCIAL TRENDS 4102.0 MARCH 2012 


13%). They were also more likely to report 
people being insulted, pestered or intimidated 
in the street (832% compared with 18%) and that 
there were higher instances of offensive 
language or behaviour in their local area (41% 
compared with 29%). 


Living in areas of social disadvantage with 
limited community cohesion can place people 
at greater risk of crime victimisation.” In 2010, 
people who had been homeless within the last 
10 years were almost three times as likely to 
report being a victim of physical or threatened 
violence in the 12 months prior to the survey, 
compared with those who never had been 
homeless (25% compared with 9%). 


Seeking assistance 


While there are services available to assist 
people who are homeless or at risk of 
homelessness, 60% of the 1.1 million adults 
who had experienced at least one episode of 
homelessness in the previous 10 years reported 
that they had not sought assistance of formal 
services when homeless. Most (81%) of those 
who did not seek assistance felt that they had 
not needed it. 


Of the 460,000 people who had been homeless 
and sought assistance from a service provider 
for their most recent experience of 
homelessness, over half (56%) had approached 
housing service providers. Two-thirds (66%) of 
those adults who did seek assistance from 
services felt that the services were helpful. 


Looking ahead 


The experience of homelessness is not the same 
for all people. The reasons people were 
homeless in the last 10 years differed, as did the 
length of time they had been homeless, the 
number of episodes of homelessness that they 
experienced, and whether or not they had 
sought assistance to move out of homelessness. 


The 2008 Australian Government White Paper 
The Road Home, A National Approach to Reducing 
Homelessness set an ambitious target to halve 
homelessness by 2020 and offer supported 
accommodation to all rough sleepers who need 
i 

The measures in the White paper were targeted 
to both help prevent more Australians from 
becoming homeless each year, and to 
strengthen the provision of services for those 
Australians who do become homeless. 


Endnotes 


Australian Government, 2008, The Road Home. A 
national approach to reducing homelessness, 


Department of Families, Housing, Community 
Services and Indigenous Affairs, Canberra, 


Australia, <www.fahcsia.gov.au> 


2. Lee, M.R., 2000, 'Community cohesion and 


violence predatory victimization: A theoretical 
extension and cross-national test of opportunity 
theory’, Social Forces 79(2), pp.683-706. 


ABS AUSTRALIAN SOCIAL TRENDS 4102.0 MARCH 2012 


11 


e)V-m Vitam Ble 





Families are the building blocks of society, 
facilitating generational renewal, human 
interaction, and linking individuals to wider 
society as a whole. Relationships are closely 
linked with wellbeing, with families playing a 
key role in socialising children and shaping the 
future of society. 


Changing patterns in divorce and cohabitation 
over recent decades have resulted in differences 
in family structure; however families still 
remain a basic unit in society. While the rate of 
marriages registered in Australia each year has 
remained relatively stable in recent years, 
Australians have been marrying at an older age, 
and delaying having their first child until later 
in life. More Australians are in de facto 
relationships, and more are choosing non- 
religious ceremonies if they do decide to marry. 


This article looks at trends in marriage, de facto 
relationships and divorce between 1990 and 
2010, as well as the effect of these trends on the 
family. 


How many marriages? 


Over the last two decades, the crude marriage 
rate fell from 6.9 registered marriages per 1,000 
estimated resident population in 1990 to 5.4 
marriages per 1,000 estimated resident population 
in 2010. This decline in part reflects a changing 
population structure. 


There were 121,000 marriages registered in 
2010, the most recorded in a single year in 
Australia, and slightly more than the 120,000 
matriages registered in 2009. Of the registered 
matriages in 2010, 31% were religious 
ceremonies, down from 58% in 1990. In 
contrast, in 2010, 69% of marriage ceremonies 
were conducted by civil celebrants, up from 
42% in 1990. 


Crude marriage rate — 1990 — 2010 


—— Crude marriage rate ea 
~—— Minister of religion 


——— Civil celebrant 
eee ; 
4 
SS , 
0 


rs | 
1990 1994 1998 2002 2006 2010 
Year 


(a) Marriages registered during a calendar year per 1,000 estimated 
resident population. 


Source: ABS 2010 Marriages and Divorces, Australia (cat. no. 3310.0), ABS 


2008 Australian Historical Population Statistics (cat. no. 3105.0.65.001) 
and ABS Australian Demographics Statistics Quarterly (cat. no. 3101.0) 


Data sources and definitions 


The main data sources for this article are the ABS 
publications: 


Marriages and Divorces, Australia, 2010 (cat. no. 
3310.0) 


Family Characteristics and Transitions, Australia, 
2006-07 (cat. no. 4442.0) 


Family Characteristics, Australia, 2009-10 (cat. no. 
4442.0) 


Births, Australia, 1993 and 2010 (cat. no. 3301.0) 





The crude marriage rate represents the number of 
matriages registered during a calendar year per 
1,000 estimated resident population at 30 June of 
the same year. 


Age-specific marriage rates per 1,000 population 
give the proportion of total estimated resident 
population aged 16 years and over for a given 
age-group who are married in a specific year. 


The crude divorce rate represents the number of 
divorces granted during a calendar year per 1,000 
estimated resident population at 30 June of the 
same year. Age-specific divorce rates provide a 
more accurate representation of divorce rates by 
taking account of both changes in the population 
structure and changing rates of marriage, but are 
not available for the most recent years examined 
in this article. 


Median is the value which divides the relevant 
population into two equal parts, half falling below 
the value and half exceeding it. 


Step families are those formed when parents re- 
partner following separation or death of their 
partner and there is at least one step child aged 
0-17 years of either member of the couple, but no 
natural or adopted child aged 0-17 years from the 
couple. 


A blended family contains at least one step child 
aged 0-17 years but also at least one natural or 
adopted child aged 0-17 years of both parents. 


.. living together 


In 2009-10, 11% (1.9 million) of Australians 
aged 18 years and over were living ina 

de facto relationship, while 53% were ina 
registered marriage. 


De facto relationships were most common 
amongst younger people, with one fifth (22%) 
of people aged 20-29 years living in these 
relationships, compared with nearly one tenth 
(9.4%) of people aged 40-49 years. The 
proportion of people aged 20-29 years living in 
a de facto relationship has doubled since 1992, 
where one tenth (10%) were living in one of 
these relationships. The rate for people aged 40- 
49 years has also nearly doubled (up from 4.7%) 
during this time. 


ABS AUSTRALIAN SOCIAL TRENDS 4102.0 MARCH 2012 


Cohabitation prior to registered marriage - 1990 


% 


a a, ss es rs | 
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 


Year 


Source: ABS Marriages and Divorces 2010, 2001, 2000, 1997, 1994 
(cat. no. 3310.0) 


De facto relationships include those living in a 
same-sex relationship and in 2009-10 there 
were around 46,300 people living in a same sex 
couple. The majority of these couples had no 
children. 


Cohabitation prior to registered marriage has 
increased over the last twenty years. In the 
early 1990s, just over half of all registered 
marriages were preceded by a period of 
cohabitation (56% in 1992).! By 2010 it was 
almost eight in ten (79%). 


Many people in de facto couples expect their 
relationship to lead to marriage. In 2006-07, of the 
1.6 million people aged 18 years and over who 
were in a de facto relationship, just over two fifths 
(42%) of them expected to enter into a registered 
marriage with their current partner. 


..age at first marriage 


Over the last twenty years, the average age at 
which Australians first marry has increased. In 
2010, the median age at first marriage for men 
was 29.6 years and 27.9 years for women, an 
increase of more than three years since 1990 
(26.5 years and 24.3 years respectively). Since 
2002, the median age at first marriage for both 
men and women has remained relatively 
unchanged. 


Median age at first marriage — 1990 — 2010 


Save the date... month and day of 
marriage in Australia 

Between 1990 and 2010, spring and autumn were 
the most popular seasons in which to marry. The 
winter months tend to be the least popular time for 
weddings, although in the Northern Territory 
couples prefer to marry in June, July or August to 
avoid unpredictable summer tropical weather. 


In 1990, September recorded the most marriages 
nationally, but in 2010, October was the most 
popular month in which to wed. Generally in 2010, 
Saturday was the most popular day to get married. 
However, possibly due to the memorable date 
10-10-10, Sunday 10 October saw the most weddings 
in one day for 2010 with 2,454 couples tying the knot 
that day. 


There are many factors that may affect the age 
at which Australians first marry. These include 
the pursuit of higher education, the associated 
delay in labour force participation, the 
increasing social acceptance of cohabitation 
before marriage, and children moving out of 
the family home later in adulthood due to these 
factors. In 2006-07, 49% of men and 45% of 
women aged 18-24 years had never left the 
parental home, mainly for financial reasons 
(41%) or the convenience and/or enjoyment of 
living at home (36%). 


Since 1990, the median age at first marriage has 
increased by three years for men and three and a 


half years for women. 


..marrying older 


The trend of marrying later in life has also been 
seen in the median age for all marriages (that is, 
when second and subsequent marriages are 
included). For men the median age for all 
matriages rose from 28.2 years in 1990 to 31.4 
years in 2010, while for women, it increased 
from 25.9 years in 1990 to 29.2 years in 2010. 


Age-specific marriage rate(a) — 1990 & 2010 


Rate(a) —— Females (1990) 


~——— Males (1990) 
Age(years) —— Females (2010) 
30 60 ——— Males (2010) 
40 
28 
20 
26 0 
re ees ee ees ee es pees 
16-19 20-24 25-29 3034 35-39 404 45-49 5SOand 
—— Males over 
——Femal 
eee oe Age group (years) 
1990 1994 1998 2002 2006 2010 (a) Marriages registered per calendar year per 1,000 estimated resident 
Year population by 5-year age groups. 


Source: ABS 2010 Marriages and Divorces, Australia (cat. no. 3310.0), 


ABS 2008 Australian Historical Population Statistics 
(cat. no. 3105.0.65.001) 


Source: ABS 2010 Marriages and Divorces, Australia (cat. no. 3310.0), ABS 


2008 Australian Historical Population Statistics 
(cat. no. 3105.0.65.001) 


ABS AUSTRALIAN SOCIAL TRENDS 4102.0 MARCH 2012 
13 


In the twenty years to 2010, the age-specific 
marriage rate more than halved in the 20-24 years 
age group, dropping to 16.1 per 1,000 men (down 
from 44.0 in 1990), and 28.4 per 1,000 women 
(down from 66.0 in 1990). 


Conversely, in middle age groups, the rate 
increased. In 1990, the marriage rate for men 
aged 30-34 years was 27.7 per 1,000 men, rising 
to 35.7 in 2010. During this time the rate for 
women in this age group also increased from 
20.8 to 31.4 per 1,000 women. 


Later childbearing 


A range of factors has influenced changes in 
Australia’s birth rates. While the age at 
marriage is increasing, more time spent on 
educational pursuits, and concerns regarding 
financial stability,* have also contributed to 
these changes. 


While Australia’s total fertility rate has not 
changed significantly between 1990 and 2010 
(1.90 babies per woman in 1990, compared with 
1.89 babies per woman in 2010), the age at 
which women have their first baby has 
changed. In 1990, the median age of first-time 
mothers was 27.5 years. By 2010, this had 
increased to 28.9 years. 


Since 2000, women aged 30-34 years have 
continued to record the highest fertility rate of 
all age groups. In 1990, the fertility rate for this 
age group was 102 babies per 1,000 women, 
rising to 123 babies per 1,000 women in 2010. 
Further, since 2005 the fertility rate for women 
aged 35-39 years has exceeded that of women 
aged 20-24 years. 


..births outside of marriage 


The proportion of births occurring outside 
registered marriage has increased over the last 
two decades. Overall, unmarried women bear 
children at younger ages than women in 
registered marriages. 


Births outside of registered marriage — 
1990 — 2010 


20 
rm T TT Tr Tr TF tT TT Tt TT Ft FY TF JF i iF Yt tv J 
1990 1994 1998 2002 2006 2010 
Year 


Source: ABS Births, Australia, 2010; 2000; 1995; 1993 (cat. no. 3301.0) 





Marriage and divorce across the states 
and territories 


The registration of marriages, and the granting of 
divorces, differs across states and territories. In 
2010, the states recording the highest and lowest 
crude marriage rates also recorded the highest and 
lowest crude divorce rates. The highest rates were 
found in Queensland, with 5.9 marriages per 1,000 
population and 2.5 divorces per 1,000 population. 
The Northern Territory had the lowest crude 
matriage rate at 4.2, as well as the lowest crude 
divorce rate at 1.9. The rates reflect the state in 
which the marriages are registered rather than the 
state of usual residence of the applicants. 


Men and women appeared to marry younger for 
matriages registered in the ACT, Queensland and 
South Australia. The lowest median age at first 
marriage for males was for those registered in the 
ACT (29.4 years), while Queensland and South 
Australia had the lowest median age for females 
(both 27.7 years). The Northern Territory had the 
highest median age at marriage registered for both 
males (30.7 years) and females (28.7 years). 


The Northern Territory also had the highest 
percentage of civil ceremonies, with civil celebrants 
conducting nearly 8 out of 10 (78%) marriage 
ceremonies in 2010. The ACT recorded the highest 
percentage of religious marriage ceremonies, with 
ministers of religion conducting more than a third 
(35%) of all marriage ceremonies. 


The Northern Territory also had the highest 
proportion of babies born outside of marriage with 
three-fifths (60%). The ACT recorded the lowest 
proportion of births outside of marriage with 27%. 


Queensland and Tasmania recorded the highest 
proportion of couples living together prior to marriage 
registered in the state in 2010 (both 86%). New South 
Wales recorded the lowest proportion (72%). 


In 2010, the median age of unmarried mothers 
was 27.3 years, just over three years older than 
in 1990 (24.0 years), and nearly four and a half 
years younger than the median age of married 
women giving birth in 2010 (31.7 years). The 
proportion of babies born outside registered 
marriage also rose during this time, from just 
over one fifth (22%) to just over one third (34%) 
of all births. 


Unmarried fathers also have children at 
younger ages. In 2010 the median age of 
unmarried fathers was 29.9 years compared 
with 34.0 years for married fathers. The median 
age of fathers has increased over the last twenty 
years, by 2.6 years for both married and 
unmarried fathers. 


How many divorces? 


Although more divorces were granted in 2010 
(50,200) than in 1990 (42,600), the crude divorce 
rate was comparatively lower (2.3 divorces per 
1,000 estimated resident population, down 
from 2.5). 


ABS AUSTRALIAN SOCIAL TRENDS 4102.0 MARCH 2012 


14 


Crude divorce rate — 1990 — 2010 


Rate(a) 
35 


1.5 


1990 1994 1998 2006 2010 


Year 


2002 


(a) Divorces granted during a calendar year per 1,000 estimated resident 
population. 


Source: ABS 2010 Marriages and Divorces, Australia (cat. no. 3310.0), 


ABS 2008 Australian Historical Population Statistics 
(cat. no. 3105.0.65.001) 


However, over the last two decades the crude 
divorce rate has varied. Rates during this 
period peaked in 1996 and 2001, at 2.9 divorces 
per 1,000 estimated resident population, while 
the lowest rate of 2.2 occurred in 2008. In part, 
the fluctuations in the crude divorce rate reflect 
both a changing population age structure, and a 
changing proportion of the population that is 
married. 


..years to separation and divorce 


The number of years to separation and divorce 
has remained stable since 2006, and recent 
divorce statistics show couples are married for 
longer before ending their marriage. 


In 2010, the median length of marriage before 
separation was 8.8 years, just over one year 
longer than in 1990 (7.5 years). The median 
length of time before divorcing increased by 
two years, from 10.2 years in 1990 to 12.3 years 
in 2010. 


Couples are also now separated for longer prior 
to divorce. In 1990, the average length of time 
between separation and divorce was 2.7 years. 
In 2010 this gap had increased to 3.5 years. 


..age at separation and divorce 


As couples are choosing to marry later in life, and 
marriages are lasting longer, couples also tend to 
divorce at older ages. In the last two decades, the 
median age at separation has increased by 


approximately six years for both men and women. 


In 2010, the median age for males at separation 
was 40.8 years, and 44.4 years at divorce, up 
from 35.3 years and 38.2 years respectively in 
1990. Reflecting the age gap between men and 
women at marriage, the female median age at 
separation was 38.1 years, and 41.5 years at 
divorce, up from 32.4 years and 35.3 years in 
1990. 


Median age at divorce — 1990 — 2010 


— Males Age 

«Females (years) 
44 
42 
40 
38 
36 
34 

1990 1994 1998 2002 2006 2010 
Year 


Source: ABS Marriages and Divorces, Australia, 2010, 2002, 2001, 1998, 
1997, 1996, 1995, 1994 (cat. no. 3310.0), 
ABS Divorces, Australia, 2004, 2003, 2002 (cat. no. 3307.0.55.001) 





Divorce and children 


Between 1990 and 2010, the proportion of 
divorces involving children decreased from 
56% to 49%. Divorces between couples with 
children aged less than 18 years made up 
around half of all divorces in Australia in recent 
years. The proportion has remained relatively 
stable since declining to 50% in 2002. 


The reality of divorce means that many children 
live without regular contact with one of their 
parents (usually the father) after separation. In 
2009-10, of the 5 million children aged 0-17 
years, just over 1 million, or one in five (21%), 
had a natural parent living elsewhere. For four 
fifths (81%) of these children, the parent living 
elsewhere was their father. 


Of all children who had a natural parent living 
elsewhere, nearly half (48%) saw this parent at 
least once per fortnight, while one quarter 
(24%) saw them less than once per year or 
never. 


Nearly three quarters (73%) of children with a 
parent living elsewhere were in one parent 
families, 14% lived in step families, and 11% 
lived in blended families. 


Divorces involving children(a)(b)— 1990 — 2010 


ee 


1990 1994 1998 2002 2006 2010 


Year 
(a) As a proportion of all divorces. 
(b) Children aged under 18 years. 


Source: ABS 2010 Marriages and Divorces, Australia (cat. no. 3310.0), ABS 


2008 Australian Historical Population Statistics 
(cat. no. 3105.0.65.001) 


ABS AUSTRALIAN SOCIAL TRENDS 4102.0 MARCH 2012 


15 


International Comparisons 





English-speaking countries generally have the 
highest crude divorce rates and countries which are 
the least secularised generally have the lowest. 
Differences between countries will also be affected 
by their respective population age structures and 
marriage rates. 


Countries with high Catholic populations, such as 
Poland and Italy had lower rates (1.7 and 0.9 
respectively), as well as countries with largely 
Islamic populations like Turkey (1.4) and Iran (1.4). 
The Vatican and the Philippines are the only 
countries where divorce is illegal. 


A ‘no-fault’ divorce principle was introduced in 
Australia by the Family Law Act 1975. Australia is 
one of the few nations that operate by this 
principle; others include the United States of 
America, Canada and Malta. 


Crude divorce rate(a), selected 
countries — 2008 


Russian Federation 
UK(b)(c)(d) 

New Zealand 
Australia 

Poland 
China(c)(e) 
Iran(f) 

Turkey 


Italy (c) 


(a) Per 1,000 population. 

(b) Excludes Channel Islands and Isle of Man. 
(c) Data for 2007. 

(d) Provisional data. 

(e) 


e) Excludes Special Administrative Regions and Taiwan 
Province. 


(f) Data for 21 March 2007 to 20 March 2008. 


Source: United Nations, 2009, Divorces and crude divorce 


rates, by urban/rural residence: 2004-2008, 
<http://unstats.un.org> 





Looking ahead 


The last two decades have seen changes in 
Australians’ relationship behaviour, the 
composition of families and the decision on 
when to have children. These changes will 
affect the ways couples and families form, 
interact and live together into the future. 


Endnotes 


1 Australian Bureau of Statistics, 1994, Focus on 
Families: Demographics and Family Formation, cat. 
no. 4420.0, Canberra, <www.abs.gov.au>. 


Za Gray, M., Qu, L. & Weston, R., 2008, Fertility and 
amily policy in Australia: Research paper no. 41 
Australian Institute of Family Studies, 
Melbourne, <www.aifs.gov.au>. 


ABS AUSTRALIAN SOCIAL TRENDS 4102.0 MARCH 2012 


16 


- ‘ 
a 
s 


Many people with disability engage in work 
and make a valuable contribution to society. 
Employment can provide financial 
independence, a better standard of living and 
improved physical and mental health.' Entering 
employment can provide individuals with 
increased confidence, expanding their social 
network and social skills as well as 
opportunities to develop a career by gaining 
new work skills and knowledge. 


Recent decades have seen major developments 
towards achieving workplace equality for all 
Australians, including those with disability. The 
Disability Discrimination Act 1992 (DDA) aims 
to protect people from discrimination because 
of their disability. Following a Productivity 
Commission Review? in 2004, the DDA was 
changed to further protect the equality of 
opportunity for people with disability. In 
addition to legislative protection, since 2009 
employment support has been provided 
through the National Disability Agreement 
(NDA).4 


Although there have been improvements in 
anti-discrimination legislation, people with 
disability are still less likely to be working than 
other Australians. The labour force 
participation rate for those aged 15-64 years 
with disability in 2009 was 54%, much lower 
than that for those without disability (83%). 
One of the priority outcomes of the National 
Disability Strategy 2010-2020 is to ‘increase 
access to employment opportunities as a key to 
improving economic security and personal 
wellbeing for people with disability...’.° 


This article investigates the labour force 
characteristics of Australians aged 15-64 years 
with disability. 


Disability rate by age(a) — 1993 - 2009 


% 
40 


30 


20 


10 


(a) 





@ 1993 
B 1998 
B 2003 
@ 2009 





15-24 25-34 35-44 45-54 55-64 


Age (years) 


People aged 15-64 years and living in households. 


Source: ABS Survey of Disability, Ageing and Carers, 1993, 1998, 2003 


2009 





DUKy-JeyiTiavar-lalem\' cela. 





Data sources and definitions 


Most of the data in this article are from the ABS 


2009 Survey of Disability, Ageing and Carers 
(SDAC) (cat. no. 4430.0). 


This article focuses on people aged 15-64 years 
living with disability and living in households. 


Disability In this article a person has a disability if 
they have a limitation, restriction or impairment, 
which has lasted, or is likely to last, for at least six 
months and restricts everyday activities. Disability 
is defined based on the International Classification 
of Functioning, Disability and Health (ICF). 


Core activity limitations There are four levels of 
core activity limitation based on whether a person 
needs help, has difficulty, or uses aids or 
equipment with any of the following core activities: 
communication, mobility and self-care. The levels 
of limitation used in this article are profound or 
severe, moderate or mild, and other disability 
(people with a disability other than a core activity 
limitation). A person's overall level of core activity 
limitation is determined by their highest level of 
limitation in these activities. 


Employed A person is employed if they reported 
that they had worked, either full or part time 
(fewer than 35 hours per week), in a job, business 
or farm during the reference week (the full week 
prior to the date of interview); or that they had a 
job in the reference week, but were not at work. 


Unemployed A person is unemployed if they were 
not employed during the reference week and: 

e had actively looked for full-time or part-time 
work at any time in the four weeks up to the 
end of the reference week; and 

e were available for work in the reference week. 


Not in the labour force A person who was neither 
employed nor unemployed. 


Participation rate The number of people employed 
or unemployed, which comprises the labour force, 
as a proportion of the total number of the 
population. 


Unemployment rate The number of unemployed as 
a proportion of the total labour force. 


People with disability 


In 2009, there were 2.2 million Australians aged 
15-64 years with disability, up from 

1.7 million in 1993. The disability rate for 
Australians aged 15-64 years, those of ‘prime 
working age’, rose from 15% in 1993 to a peak 
of 17% in 2003, then returned to 15% in 2009. In 
2009, just over half (51%) of people with 
disability were women. 


The likelihood of living with disability 

increases with age. In 2009, the disability rate 
among 15-24 year olds was 6.6% and the rate 
was higher for successively older age groups, 


ABS AUSTRALIAN SOCIAL TRENDS 4102.0 MARCH 2012 


with 18% of 45-54 year olds, and 31% of 55-64 
year olds living with disability in 2009. 


Labour force participation 


Labour force participation provides an 
indication of both the desire for and availability 
of paid work, and the ability to obtain and 
perform such work. Between 1993 and 2009, the 
labour force participation rate for working-age 
people (15-64 years) with disability was 
relatively stable. In 1993, the rate was 55%, and 
this was broadly similar in 2009 at 54%. 
Conversely, over the same period, the 
participation rate for working-age people with 
no disability increased from 77% in 1993 to 83% 
in 2009. 


In 2009, just over half (54%) of working-age people 
with disability participated in the labour force 
compared with 83% of working-age people without 
disability. 


Over the sixteen years from 1993 to 2009, the 
unemployment rate for 15-64 year olds with 
disability decreased from 17.8% to 7.8%, in line 
with the similar decline in unemployment for 
those with no disability (from 12.0% in 1993 to 
5.1% in 2009). However, the unemployment rate 
for people with disability continued to be 
significantly higher than for those without 
disability in 2009. 

Nearly half (46%) of working-age people with 
disability were not in the labour force in 2009, 
and more than half of these (59%) were 


Labour force participation by disability 

status and age(a) — 2009 

Participation 
rate % 

100 


80 


@ Disability 
@ No disability 


60 
40 
20 





0 


15-24 253 354 4554 55-64 
Age (years) 


(a) People aged 15-64 years and living in households. 


Source: ABS 2009 Survey of Disability, Ageing and Carers 





permanently unable to work. Of those people 
with disability who were not in the labour 
force, one fifth (20% or 194,000) had no 
employment restriction, meaning that it was 
not their disability which prevented them from 
working. Difficulties such as access to childcare 
(22%), were reported as limiting these people’s 
ability to participate in the labour force despite 
having no employment restrictions. For people 
without disability who were not in the labour 
force, other difficulties were reported such as a 
lack of vacancies or suitable hours (both 11%). 


..age and sex 


Labour force participation rates for people with 
disability varied with age, a similar pattern to 
people without disability. The difference in 
labour force participation between people with 
and without disability increased with age. 


Disability status(a) by labour force status — 2009 


Males 
With No 
disability(b) disability 
Labour force status % % 
Employed full time 42.5 70.5 
Employed part time 12.3 13.9 
Total employed 54.8 84.4 
Unemployed 4.9 4.5 
Not in the labour force 40.2 11.1 
Total 100.0 100.0 
Total (‘000) 1,059.4 6,323.0 
% % 
Participation rate 59.8 88.9 
Unemployment rate 8.2 5.0 


(a) People aged 15-64 years and living in households. 


Females Total 
With No With No 
disability(b) disability disability(b) disability 
% % % % 
19.9 38.2 31.0 54.5 
25.5 34.5 19.1 24.1 
45.5 72.7 50.0 78.6 
3.6 4.0 4.2 4.2 
51.0 23.4 45.7 17.2 
100.0 100.0 100.0 100.0 
1,111.9 6,224.9 2,171.3 12,547.9 
% % % % 
49.0 76.6 54.3 82.8 
7.3 5.2 7.8 5.1 


(b) Includes those who may not have a specific limitation or restriction. 


Source: ABS 2009 Survey of Disability, Ageing and Carers 


ABS AUSTRALIAN SOCIAL TRENDS 4102.0 MARCH 2012 


18 


Selected labour force characteristics by Disability groups 


disability group(a) — 2009 Disabilities can be broadly grouped depending on 
whether they relate to functioning of the mind or 


_ oe J ead the senses, to anatomy or physiology. A person is 
participation Unemployment classified to one or more of the following five 
Disability People rate rate disability groups: 
group ‘000 * 7 e Sensory or speech (loss of sight, hearing or 
Sensory and speech difficulties) 
Bpecen nae? Pet ie e = Intellectual (difficulty with learning, or 
Intellectual 244.8 40.9 16.3 understanding things) 
Physical 1,546.0 49.7 7.5 e Physical (breathing difficulties, blackouts, 
fits, chronic or recurrent pain, incomplete 
Psychological 369.6 29.2 18.9 use of arms, finger, feet or legs, restriction in 
Head injury, physical activities or in doing physical work, 
stroke or disfigurement) 
Phallscatiace Ta2ee 2a:0 15.3 e Psychological (nervous or emotional 
All with a condition, mental illness) 
SONA), Pt e Head injury, stroke or brain damage (with long- 
No disability 12,547.9 82.8 5.1 term effects that restrict everyday activities) 
All people 14,719.2 78.6 5.4 


without disability (2%). For people aged 55-64 
years with disability, their low participation 
rate may partly reflect the desire for retirement 
or difficulties experienced by mature-age job 
seekers, which can discourage some from 
looking for work.’ 


(a) People aged 15-64 years and living in households. 
(b) Includes other disability type(s) and those who may not have a 
specific limitation or restriction. 


Source: ABS 2009 Survey of Disability, Ageing and Carers 


The peak of participation for people with 
disability was in the 25-34 years age group 
while for those without disability, participation 
peaked at 45-54 years. People aged 55-64 years 
with disability had the lowest participation rate 
(40%) of all the age groups. Of people of this 
age, with disability and not in the labour force, 
nearly one third (30%) reported long-term 
illness or injury as a reason for not wanting to 
work, much higher than people of the same age 


There were differences in labour force 
participation between working-age men and 
women among those with disability, with 
women (49%) less likely to participate than men 
(60%). This was also true for people without 
disability (77% and 89% respectively), partly 
reflecting women’s roles in family 
responsibilities. 


..disability type 


Spotlight on a disability - Mental illness Of the five main disability groups, the most 
The ABS National Health Survey 2007-08 (cat.no. common in 2009 was physical disability, which 


4364.0) tells us there were 1.8 million people of affected nearly three quarters (71%) of working- 
working-age living with mental illness in Australia.® age people with disability. This was much 
Mental illness is a clinically diagnosable disorder higher than the proportion with sensory and 
that significantly interferes with an individual's 5g 0 ; 

i: aa speech disability (21%) or psychological 
cognitive, emotional or social abilities. Mental ; ae 6 
disorders can include anxiety, affective or mood disability (17%). People can be affected by more 
disorders, and substance abuse disorders.” than one type of disability and therefore be 


Having a mental illness does not always result in classified into one or more disability ie aa 


disability. Of the 1.8 million people with mental The type of disability that an individual has can 

a in eae less than half (43%) reported affect their likelihood of participating in the 
ja aaa labour market. People with sensory or speech 

Having a mental health disability can significantly impairment had the best labour market 

eanoete ul ea = jeune alliicy @ ongage ulm Me outcomes with a participation rate of 54% and 


labour market. In 2007-08, the participation rate of 1 brates of 700% Sonal | 
people with disabling mental illness was 51%, much ah EP en ee te) WOES peop 


lower than the rate for people without disability whose disability was psychological had the 
(82%). This disparity may in part result from lowest participation rate (29%), and the highest 
prejudice towards people with mental health unemployment rate (19%). People with sensory 


conditions.* Of people living with disabling mental . . : 
illness who were employed in 2007-08, significantly One Doc sin paiemcaemay De apie topenent 


more (49%) worked part time, compared with all from assistive technologies but this is not the 
people without disability (28%).6 case for people with psychological disability 
Note: The 2007-08 National Health Survey such as mental illness. People with mental 


measured disability differently to the Survey of illness may experience disruption te their work 
Disability, Ageing and Carers, and as such the attendance and career due to the episodic 
results from these surveys differ. nature of their disability."! 


ABS AUSTRALIAN SOCIAL TRENDS 4102.0 MARCH 2012 
19 


..disability severity 


The severity of disability is an indication of a 
person/s limitations in the core activities of 
communication, mobility and self-care. Of 
people aged 15-64 years with disability, almost 
one quarter (23%) had profound or severe 
disability, while nearly half (47%) had moderate 
or mild disability. About one third (30%) of 
people with disability did not have a core 
activity limitation, yet they may have had a 
school or work restriction. 


As with disability type, the severity of a 
person’s disability is reflected in their ability to 
participate in the labour force. Generally, labour 
force participation decreases as the severity of 
disability increases. In 2009, those aged 15-64 
years with moderate or mild disability had a 
participation rate of 53%, while those with 
profound or severe disability had a labour force 
participation rate of 31%. This pattern was 
evident across all types of disability. For 
example, the participation rate of those with 
moderate or mild physical restriction was 51%, 
while those with profound or severe physical 
restriction had a participation rate of 28%. 


To see a pattern in unemployment rates, 
severity and type of disability need to be looked 
at together. For example, the unemployment 
rate for people with intellectual disability was 
high in comparison with other disability 
eroups, regardless of severity. Those with 
moderate or mild intellectual disability (20%) 
had a higher unemployment rate than those 
with moderate or mild physical disability 
(8.8%). This may partly reflect the unique 
barriers that people with intellectual disability 
face in accessing education and work. 


..employment restrictions 


Some people with disability experience 
employment restrictions such as being 
restricted in the type of job they can do or the 
number of hours they can work, or needing 
special assistance in the workplace. People with 
disability who had an employment restriction 
were far less likely to be participating in the 
labour force (46%) than those without an 
employment restriction (71%). 


Of the 69% of people with disability who had 
an employment restriction, two of the most 
common restrictions were the type of job or the 
number of hours they could work (51% and 
31% respectively). People with profound or 
severe disability were the most likely to have 
some kind of employment restriction (92%). 


Employment 

In Australia in 2009, over one million working- 
age people with disability (50%) were in paid 
employment, comprising 10% of the total 


Young people with a disability 


For young people, the time of transition from 
school to continued study or employment can be 
critical for their long-term economic future. For 
young people with disability, they must take 
account of their abilities and restrictions in their 
choice of study and work paths. Completing Year 
12 can enhance study and work options. The 2009 
Survey of Disability, Ageing and Carers indicated 
that of people aged 18-24 years with disability, 
nearly two fifths (38%) had completed Year 12 
compared with almost half (49%) of those without 
disability. 


While the majority of young Australians either 
work, study or do a combination of both, there are 
some young people who are not doing either. 
These people are described as not fully engaged 
and are at risk of unemployment or only securing 
low paid work. Being fully engaged describes 
people who are either studying full time; working 
full time; or studying part time and working part 
time. 


In 2009, almost two-fifths (38%) of young people 
(15-24 years of age) with disability were fully 
engaged. This compares with over half (56%) of 
young people without disability who were fully 
engaged. Young people with disability who were 
not fully engaged were either working part time 
(25%), studying part time (7%) or doing neither 
(68%). 


Australian workforce. Men with disability 
(55%) were more likely to be employed than 
women with disability (45%). 


..Nours worked 


Generally, people with disability who were 
employed were more likely than people 
without disability to work part time (38% and 
31% respectively). The number of hours usually 
worked by people with disability was 
associated with the severity and type of 
disability they had. 


People with profound or severe disability who 
worked were more likely to work part time 
hours than those with less severe disability. 
Nevertheless, almost half (49%) of those with 
profound or severe disability who were 
working, worked full time. 


Hours usually worked each week(a) by 
severity of disability 


0 

bin @ Profound or severe 
@ Moderate or mild 
®@ Other disability (b) 

60. BNo disability 


, oy 
tin HH ih 


1-15 16-4 35 or more 
Hours usually worked per week 





(a) People aged 15-64 years and living in households. 


(b) Includes those who may not have a specific limitation or 
restriction. 


Source: ABS 2009 Survey of Disability, Ageing and Carers 


ABS AUSTRALIAN SOCIAL TRENDS 4102.0 MARCH 2012 


Income support 

A key role of the Australian Government in 
supporting people with disability is the provision 
of income support. Around 819,000 people with 
disability* in Australia received the Disability 
Support Pension (DSP) in June 2011.! Income and 
assets testing of the pension enable Disability 
Support Pension (DSP) recipients to earn an income 
while still receiving full-pension or part-pension.! 


The number of people receiving the DSP is 
growing despite relative stability in the disability 
rate.!4 This growth is partly due to changes in the 
eligibility criteria such as the relaxation in the 
number of hours recipients are able to work while 
being able to continue receipt of the payment. 


The Productivity Commission has completed an 
inquiry into disability care and support in 
Australia. The outcomes of this inquiry have led 
the Australian Government to develop reforms to 
the DSP and establish a National Disability 
Insurance Scheme (NDIS).15 


It is proposed that the NDIS will provide insurance 
cover for all Australians in the event of significant 
disability. This cover will provide long-term care 
and support.!° Suggested reforms to the DSP will 
allow recipients to work more hours than 
previously permitted. 


* Disability is defined as being unable to work for 2 
years because of illness, injury or disability, or 
being permanently blind. 


Among the five disability groups, psychological 
and intellectual disabilities have greater 
association with fewer working hours. More 
than a third (35%) of people with psychological 
disability who worked, usually worked no 
more than 15 hours, followed by people with 
intellectual disability (30%). In contrast, about 
two thirds of employed people with sensory or 
speech disability (66%) or physical disability 
(61%) worked full time. 


..occupation and industry 


Almost one fifth (19%) of working-age people 
with disability who were employed in 2009 
worked as professionals, followed by clerical 
and administrative workers, and technicians 
and trade workers (both 15%). The distribution 
of people across different occupations is similar 
for people with and without disability. 
However, there was some variation of 
occupations according to the type of disability. 
For example, around one third (34%) of 
employed people with intellectual disability 
were working as labourers, such as cleaners, in 
2009, while one-fifth (20%) of employed people 
with sensory or speech disability were in 
professional occupations, such as secondary 
school teachers. 


Both people with and without disability had 
similar distributions across industry groups. 
Some industries had a higher than average 

(10%) disability prevalence rate, particularly 


Agriculture, forestry and fishing (15%) and 
Transport, postal and warehousing (12%). This 
may be partly reflective of the older age profile 
of people in these industries. 


People with disability who were working were 
more likely to run their own business (13%), 
and/or work from home (9%), than employed 
people without disability (10% and 6% 
respectively). Such situations may enhance the 
flexibility of working arrangements, making it 
easier for people with disability to participate in 
the labour force. 


..INCome sources 


Among working-age people with disability 
who were employed, the most commonly 
reported main source of cash income was 
wages or salary (77%), much higher than the 
next most common income sources, 
government pensions or allowances, and 
business income (both 9%). 


Of people with disability who were employed, 
over one fifth (22%) received some form of 
government pension or allowance. This was 
nearly double that of people without disability 
who were employed and in receipt of a 
government pension or allowance (12%). People 
with disability who were working part time 
were more likely to receive a government 
pension or allowance (41%) than those working 
full time (10%). The main disability income 
support, The Disability Support Pension, can 
provide income to supplement earnings from 
work (see Income support box). 


assistance needed 


Employers and disability employment service 
providers may need to make special 
arrangements to ensure that employees with 
disability have a suitable environment in which 
to work. In 2009, 12% of employed people with 
disability required some type of special work 
arrangement such as being provided with 
special equipment or being allocated different 
duties. 


The type of disability influenced whether 
assistance was needed in the workplace and the 
kind of assistance required. Employed people 
with psychological or intellectual disability 
were likely to require special working 
arrangements, with nearly one fifth (18% and 
16% respectively) receiving assistance, such as a 
support person to assist or train them on the 
job. People with sensory or speech disability 
who were working were less likely to require 
special working arrangements, with one tenth 
(9%) receiving special working arrangements. 
For this disability group, assistance provided 
took the form of special equipment (48%). 


ABS AUSTRALIAN SOCIAL TRENDS 4102.0 MARCH 20122 


' 4 SY. 
wi Cg 


International Comparisons 


In the mid-2000s, of selected OECD countries, the 
Czech Republic had the highest unemployment 
rate for people with disability whilst Mexico had 
the lowest. Australia, Canada, the Netherlands, 
Sweden and the United Kingdom all had relatively 
similar rates of unemployment for people with 
disability. 


Unemployment rates by disability 
status(a) — 2003-2006 


Czech Republic 
Germany 
Ireland 
Hungary 

Italy 

Korea 

Canada 
Netherlands 
Australia 
Sweden 

United Kingdom 
United States 
Mexico 


®@ Disability 
® No disability 





0 10 20 30 


(a) People aged 15-64 years. 

Source: OECD Sickness, Disability and Work (Keeping on 
Track in the Economic Downturn) Background Paper, 2009. 
www.oecd.org. All data are for 2005 except Australia (2003), 
Mexico and United States (2004), and Canada and United 
Kingdom (2006). Note that the disability definitions vary 
across countries. 


The severity of disability also influenced 
whether a person required any special work 
arrangements, with 10% of employed people 
with moderate or mild disability needing 
special work arrangements compared with one 
fifth (20%) of those with profound or severe 
disability. 


Unemployment 


As well as being less likely to participate in the 
labour force, people with disability who do 
participate are more likely to be unemployed. 
The unemployment rate for 15-64 year olds 
with disability in 2009 was 7.8%, compared 
with 5.1% for people without disability. The 
unemployment rates of men and women with 
disability were not significantly different (8.2% 
and 7.3% respectively). 


As with the labour force participation rate, the 
unemployment rate varied between disability 
eroups. People with sensory or speech 
disability had the lowest unemployment rate 
(7.0%). Conversely, people living with 
psychological or intellectual disability had the 
highest unemployment rates (19% and 16% 
respectively). 


Barriers and incentives to work 


In 2009 according to the Survey of Disability, 
Ageing and Carers, for people with disability aged 
15-64 years seeking work, the most commonly 
reported main difficulty in finding work was their 
own ill health or disability (35%). This was 
followed by their lack of the necessary skills or 
education (13%). 


Similarly, people with disability who were not in 
the labour force reported long-term illness or injury 
as the main reason for not wanting to work (52%) 
or not looking for work (35%). 


The 2008-09 ABS Survey of Barriers and Incentives 
to Labour Force Participation indicated that, for 
people who assessed their health as poor, the most 
commonly reported incentives to enable work 
included being able to maintain welfare benefits 
(39%), less paperwork from government agencies 
(31%) and being able to sit down (26%).!” 


Under the National Disability Agreement (NDA) 
people with disability have access to increased and 
improved services to assist them into work.* Two 
types of specialist agencies exist to support people 
with disability to find and maintain work: 


e §=Australian Disability Enterprises (around 
20,000 people with disability employed in 
Australian Disability Enterprises) 


e = =©The Disability Employment Services 
(employment assistance for job seekers with 
disability)"® 


The latest progress report of the NDA indicates 
that there was an 83% increase in the number of 
people using disability employment services from 
64,800 in 2004-05 to 118,800 in 2009-10." 


An example of overcoming the 
barriers... 


Jo* had a strong interest in getting work, but had 
been struggling with anxiety issues since recently 
finishing Year 12. Jo's feelings of anxiety meant she 
found it hard to talk to people; she was reluctant to 
leave home and worried about how she would 
manage job interviews and employment. After a 
referral to a disability employment services 
provider, CRS Australia, Jo received guidance on 
job options, interview techniques and disability 
counselling and support. Jo was interested in jobs 
in retail and when an option for a job at a 
supermarket came up, she was keen but anxious. 
The employment service helped Jo prepare for 
work at the supermarket, working with her 
psychologist. After an initial work experience 
placement, Jo was offered a paid position and has 
now worked there for six months. 


‘I feel good! It is a great environment to work in and I 
enjoy the social aspect. Work experience helped a lot’, 
said Jo. 


* Name changed for confidentiality. 


Source: CRS Australia, 2012, www.crsaustralia.gov.au. 


ABS AUSTRALIAN SOCIAL TRENDS 4102.0 MARCH 2012 


22 


People not in the labour force 


In 2009, of people aged 15-64 years with 
disability, 46% were not in the labour force, 
which is significantly higher than people with 
no disability (17%). Of the nearly one million 
people with disability who were not in the 
labour force, more than half were women 
(57%). In comparison, over two thirds (67%) of 
people without disability who were not in the 
labour force were women. Nearly half (46%) of 
people with disability who were not in the 
labour force were aged 55-64 years, and of 
those of this age, 71% were permanently unable 
to work. 


Having long-term illness or disability was 
reported by more than half (52%) of those not in 
the labour force as the main reason for not 
wanting, or not being able to work. Other main 
reasons for not being in the labour force were 
being satisfied with their current situation (no 
need to work for now) (18%), or being 
permanently retired (9%). Of people with 
disability who were not in the labour force, 
some found it difficult to find a job due to their 
illness or disability (41%) or because they 
lacked the necessary skills or experience (8%). 


Looking ahead 


The Australian Government, through the 
National Disability Agreement, provides support 
to people with disability who wish to enter 
employment.’ Under the National Disability 
Strategy 2010-2020, federal, and state and 
territory governments are making a concerted 
effort to improve and increase employment 
services for people with disability.° In addition, 
planned reforms to the Australian welfare 
support system, including the National 
Disability Insurance Scheme, aim to create 
increased opportunities for people with 
disability to enter and maintain employment." 
Increases in labour force participation may 
improve both financial security and personal 
wellbeing for people with disability. 


Endnotes 


1 


10 


11 


12 


13 


14 


15 


16 


17 


18 


19 


Ross CE and Mirowsky J. 1995 ‘Does 
Employment Affect Health?’ Journal of Health and 
Social Behaviour 36(3): 230-243. 


The Disability Discrimination Act 1992 , viewed 
31 October 2011 <www.comlaw.gov.au>. 


Productivity Commission 2004 Review of the 


Disability Discrimination Act 2 1992 , viewed 31 
October 2011 <www.pc.gov.au>. 

Department of Families, Housing, Community 
Services and Indigenous Affairs 2009_The 


National Disability Agreement 2009, viewed 24 
October 2011 Se ee 
Department of Families, Housing, Community 


Services and Indigenous Affairs 2011 The 


National Disability Strategy 2010-2020, viewed 24 
October 2011 <www.fahcsia.gov.au>. 

ABS 2007-08 National Health Survey, data 
available on request <www.abs.gov.au>. 


Australian Health Ministers 2009 Fourth National 
Mental Health Plan, viewed 24 October 2011 
<www.health.gov.au>. 

Thornicroft, G. 2009 Shunned: Discrimination 
against people with mental illness. Oxford 
University Press, Oxford. 


ABS 2010 Older el ae and the labour market, 
Australian Social Trends, cat. no. 4102.0 
<www.abs.gov.au>. 

ABS 2011 Fifty years of Labour Force: Now and 
then, Australian Social Trends, cat. no. 4102.0 
<www.abs.gov.au>. 

Waghorn G and Lloyd C. 2005 The Employment 
of People with Mental Illness: Discussion paper 
for the Mental Illness Fellowship of Australia 
<www.mifa.org.au>. 

Department of Families, Housing, Community 
Services and Indigenous Affairs (FaHCSIA). 
FaHCSIA Facts and Figures — October 2011. 
<www.fahcsia.gov.au>. 

Centrelink 2012 Disability Support Pension (DSP) 
<www.centrelink.gov.au> [Accessed 12 March 
2012]. 


Assistant Commissioner Ralph Lattimore, 
Productivity Commission, DEEWR Seminar: 
Disability Care and Support, 9 November 2011. 


Productivity Commission. 2011 Disability Care 
and Support: Inquiry Report viewed 11 
November 2011 <www.pc.gov.au>. 

National Disability Insurance Scheme 2012, 
viewed 18 January 2012 <www.ndis.gov.au>. 


ABS 2009 Barriers and Incentives to Labour Force 
Participation, Australia, Jul 2008 to Jun 2009, cat. 


no. 6239.0 <www.abs.gov.au>. 


Department of Families, Housing, Community 
Services and Indigenous Affairs 2011 


Employment for People with Disability viewed 24 
October 2011 <www.fahcsia.gov.au>. 


AIHW 2011 Disability support services 2009-10: 


report on services provided under the National 
Disability Agreement cat. no. DIS 59, viewed 24 


October 2011 <www.aihw.gov.au>. 











ABS AUSTRALIAN SOCIAL TRENDS 4102.0 MARCH 2012 


23 


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